Rick Graf: The team will consist of four individuals; in Atlanta, California, Dallas and one in Chicago. We've filled the Dallas position, and we'd like to have the rest of the roles filled by the end of the year. Incidentally, in discussion with clients, we've seen that client/management role in office and retail; it's common in the commercial real estate area, but not as common in the multifamily sector. It's being received very well; they're finding it makes it easier to do business with our company.

GlobeSt.com: You're involved in a lot of different real estate sectors. Can you describe them?

Rick Graf: Yes, we manage a number of different product types; we do have a commercial division and we have a lot of mixed-use development – multifamily with a retail component. We're involved in military housing space, have a division focusing on HOA management and we're looking at dabbling in the single-family-for-rent market. We're involved in affordable housing and student housing, too. We are involved in all the different flavors of multifamily, but the biggest chunk is conventional multifamily. We have specialized commercial groups, then staff those disciplines with people who can manage effectively in those markets.

GlobeSt.com: You've been with Pinnacle for many years and have gone through a couple of downturns and recoveries with the company. How does this recovery stack up against previous ones?

Rick Graf: The real difference is this downturn and recession has been broader based. Previous ones were more focused on particular segments – we had the tech-wreck in the late 1990s, the savings and loan downturn in late 1980s. But this recent downturn has been broad based; it's touched every type of business in every sector of economy – certain parts of the real estate business have started to recover, while others haven't. Also, while there's some job growth, there hasn't been a lot of job creation yet. We've had a modest recovery that's largely been jobless. As jobs go, so does the real estate business.

GlobeSt.com: Speaking of real estate, what are some of the commercial real estate trends you've been noticing?

Rick Graf: What we're seeing is a trend that started a few years ago and continues. There is a great deal of consolidation that has been occurring in the ownership of real estate at a macro level, also in control and decision-making processes about real estate outcomes, both in ownership or management. In reality, it's harder for smaller owners/operators to compete in the landscape today.

GlobeSt.com: How is Pinnacle positioning itself to take advantage of what's going on out there?

Rick Graf: We've gone through processes in which we strategically reduced the size of company. We analyzed businesses and services and felt we could enhance the overall strategy of moving more into the institutional area by shedding some businesses that weren't useful to us. Part of that is focusing our efforts to attract better quality clients to firm. Part of that strategy and positioning is to have a much greater focus on our operational capabilities, to focus on value-added services. It involves more than just offering a commodity; it focuses on bringing a value portion to the whole aspect of real estate ownership. This might mean helping one client find better underwriting opportunities. In another situation, it could mean working with a client on managing or developing strategies; or helping another with physical improvements or disposition strategies. We feel this is a great way for us to take advantage of opportunities, as we have a pretty good run for next few years, particularly in the multifamily space, as fundamentals there are solid.

GlobeSt.com: Will those attractive fundamental continue? Will the multifamily sector remain hot?

Rick Graf: Though there is some concern about multifamily, I believe the fundamentals are strong for the future. The demographics are there -- young people are graduating from college and entering the workforce; there is the concept of renter-by-choice and the declining home ownership rate; all of those things bode well for multifamily. I also think the returns from an investment standpoint are attractive and can't be duplicated in other real estate sectors. It's heated up in terms of value and cap rates are at all-time lows. It should cool off a bit with the development pipeline, but the fundamentals are so strong, I think we have a window that will be robust for the next five-to-seven years. If we do create sustainable job growth – and I think we will – it'll bode that much better for multifamily.

GlobeSt.com: What else do you see in your crystal ball for the rest of this year and into 2013?

Rick Graf: I believe that absent some major catastrophe in financial markets or otherwise, we'll see steady progress and growth. Multifamily space wil continue to be strong; industrial will be a mixed bag, depending on location and configuration and office and retail will be somewhat sluggish. But real estae, in general, will continue to be a good place for people to invest their money, especially when comparing to other investment vehicles. Having said that, there is always that risk across the country for more development. You don't have to get far from DFW to see a lot of available land. We're home to a lot of developers, and they, by nature develop. Still, people will want to have well-thought-out game plans for development and investment that should bode well for 2013 and beyond. I'm fairly confident going beyond 2014; I think we're at the beginning of a pretty good run.